power point presentation on global is at ion has eliminated the need for offshore business

8/2/2019 Power Point Presentation on Global is at Ion Has Eliminated the Need for Offshore Business

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Globalisation Has Eliminated The Need For

Offshore Business

By RamjunumRandhirsingh

ID : 1020291



Globalisation

Definition

Historical background

Rationale and Reasons

Factors that have helped spread of globalisation

Key players

Pros and Cons

Benefits and Problems Complexities and controversies



Definition of Globalisation

Globalization refers to the process of integrationacross societies and economies. The phenomenonencompasses the flow of products, services, labor,finance, information, and ideas moving acrossnational borders. The frequency and intensity of theflows relate to the upward or downward direction of globalization as a trend.

It is the breaking down of trade barriers with the

avowed aim of increasing efficiency of production inthe world. Globalisation (specialisation and free trade)also implies that goods and services should beproduced by those countries and firms that producethem at lowest cost.



RATIONALE FOR GLOBALISATION

A primary economic rationale for globalization is reducingbarriers to trade for the enrichment of all societies. The greatergood would be served by leveraging comparative advantages forproduction and trade that are impeded by regulatory barriersbetween sovereignty entities. In other words, the betterment of

societies through free trade for everyone is possible as long aseach one has the freedom to produce with a comparativeadvantage and engage in exchanges with others.

This economic rationale for global integration depends on

supporting factors to facilitate the process. The factors includeadvances in transportation, communication, and technology toprovide the necessary conduits for global economic integration.

While these factors are necessary, they are not sufficient.Collaboration with political will through international relations

is required to leverage the potential of the supporting factors.



Reasons for Globalisation

Globalisation helps minimise labour costs

In some labour-intensive industries (eg. clothing, toymaking etc), wages represent the largest input forbusinesses. Many labour intensive areas of production are

located in countries such as Mexico, China, India and SriLanka.

Globalisation increases access to natural resources.

Some countries have limited access to cheap resources.Firms therefore relocate to take advantage of productionabroad.



Factors which have helped the spread of globalisation

Low transport costs, containerisation

Telecommunications

Internet

Low trade barriers

Political stability Increasing role of TNCs



Key Players in Globalisation

They include:-

1. Multinational enterprises that carry out business acrossnational boundaries;

2. The World Trade Organisation (WTO), through which

international trade agreements are negotiated andenforced;

3. The World Bank and the International Monetary Fund(IMF) which are meant to assist governments in achievingdevelopment aims through the provision of loans andtechnical assistance; and

4. National governments, who together with theseinternational institutions, are instrumental in determiningthe outcomes of globalisation



Friends I now move on to the second part of my presentation which is on Offshore business. It will beas follows:

Introduction to offshore business

Definition of offshore business

Offshore Financial Centres

What are offshore companies most commonly used for

Reasons for going offshore Why should one use or own a registration offshore

company

Offshore Business



Definitions of an offshorebusiness/company

Offshore business/ or Company refers to abusiness/company that is formed in a jurisdiction outside

ones own jurisdiction. It is another way of saying offshorecorporation.

An Offshore Corporation refers to a company that is

formed in what is considered to be an offshore jurisdictionrelative to the jurisdiction you are located in. An offshorecorporation does not necessarily need to be located in a taxhaven country. This means an offshore corporation couldbe formed in a country with a high corporate tax basis orthe term could just as easily apply to a corporation formedin a country with a zero or very low tax basis like Panama

which only taxes corporations $300 per year if all theirincome is offshore derived



Offshore Financial Centres

Offshore financial centres sometimes have a bad namein the international financial community. There are,however, reasons for their existence, and not all of these reasons are dishonourable.



What are offshore companies most commonly used for?

Offshore companies are most commonly used foroffshore banking to conduct international trade,investment activities, by professionals and for assetprotection. Offshore companies can be involved inbuying and selling goods and services, hold bankaccounts and operate businesses. Offshore companiesare also commonly used for the ownership of realproperty and land; for ownership of intellectualproperty, licensing and franchising; personal serviceby individuals working overseas and offshore e-business.



Reasons for Going Offshore

Protect your assets from claims, lawsuits, orexcessive taxation.

Optimize taxation on your business proceeds.

Increase your financial privacy and confidentiality

with offshore banking.

Expand your business freedom worldwide andenjoy less bureaucratic laws of another

jurisdictions.

Secure yourself for times of personal orgovernmental strife with second passport and

citizenship.



Service delivery disruption inoffshore

Increasing onshore presence would provide customersand service providers with the option of proximity andpsychological reassurance while outsourcing. In theprocess, it is bound to create distribution of work

between onshore and offshore.



The dynamics of cost efficiency in offshore

The first and foremost key driver to choose offshore iscost efficiency. Cost efficiency in the offshoreoutsourcing business is a result of continuousoptimization through scalability of operations. The

lesser the onshore presence, the more profitable theorganization, and hence better the ability to provide“value for money” services.



Offshoring

Offshoring is a result of business globalization. It occurs when business functions are performed in anothercountry to reduce costs, tap new markets and accesstalents unavailable in a company's home country.



Conclusion

I see that though both Globalisation andOffshore Business are completely different

things, it is Globalisation that is changingeconomic theory and business practices whichincludes offshore business as well. Now wetalk about oneshore, we talk about the world

as a global village due to certain factors liketechnology, economic interdependence etc ..



To finish I will quote from John Donne (1572-1631) which appears in Devotions Upon EmergentOccasions, Meditation XVII:

“No man is an island, entire of itself … every man is a

piece of the continent, a part of the main … ”

power point presentation on global is at ion has eliminated the need for offshore business

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